News

Analyst: $60 game price maybe too high

Posted on Tuesday, 9 January 2007 by Speed, source: Gamedaily
Gamedaily is reporting that analyst Jeetil Patel of Deutsche Bank believes the pricetag of $60 is probably too high to keep up for gamers to continue buying them

"We believe the inability to sustain $60 into April suggests consumer appetite for premium priced titles is questionable. Note the reported reductions include Xbox 360 SKUs of the bellwether Madden game, as well as Tiger Woods & FIFA, the latter two being released this past quarter (all three cut from $60 to $50). Recall that EA also cut Xbox 360 prices in May-06 despite selling into price insensitive early adopters," Patel continued.

Meanwhile, game publishers continue to say that next-gen titles demand more investment and therefore require a higher pricetag.

We'll see in the long run who's right :)
In other news:

11 Comment(s)

Anonymous

Anonymous

Even 50$ is too much. We are talking a game here, and most are crap anyway so you end up with 50$+ of wasted money and huge disappointment which makes you more carefull the next time. If games were 20$ I would be spending 4x more money then now. Now I'm just to scared to buy something I can't try even if it was hyped real good.
Even 50$ is too much. We are talking a game here, and most are crap anyway so you end up with 50$+ of wasted money and huge disappointment which makes you more carefull the next time. If games were 20$ I would be spending 4x more money then now. Now I'm just to scared to buy something I can't try even if it was hyped real good.
Quote
Posted on 09:57, January 09th 2007
Anonymous

Anonymous

Totally agree with ya Anoy.. I bought Start trek Legacy for Xbox 360. Im a die-hard Star Trek fan, and what a pile of crap it turned out to be. Why the hell to they sell Licences for great named projects and not scrutinize the end product. I shall be vary cautious of buying a £44.99 game from now on. thats close to $90 i think.. Sux big time. I spose most would argue "try the demo before you buy it". but not all titles get demos like STL :( taken it to trade in centre already..
Totally agree with ya Anoy.. I bought Start trek Legacy for Xbox 360. Im a die-hard Star Trek fan, and what a pile of crap it turned out to be. Why the hell to they sell Licences for great named projects and not scrutinize the end product. I shall be vary cautious of buying a £44.99 game from now on. thats close to $90 i think.. Sux big time. I spose most would argue "try the demo before you buy it". but not all titles get demos like STL :( taken it to trade in centre already..
Quote
Posted on 14:25, January 09th 2007
Vexxed

Vexxed

I would of thought the title would of been enough to keep your wallet in your pocket.
I would of thought the title would of been enough to keep your wallet in your pocket.
Quote
Posted on 18:46, January 09th 2007
derf26 (old)

derf26 (old)

Indeed. THis is why I advocate buying good games (the very few that come out for the PC) and dow-*cough* borrowing the rest to have a laugh at.
Indeed. THis is why I advocate buying good games (the very few that come out for the PC) and dow-*cough* borrowing the rest to have a laugh at.
Quote
Posted on 18:50, January 09th 2007
iamposthuman

iamposthuman

The development costs of making a game have risen from an average of 7-8 million dollars to upwards of 16-18 million dollars in the last few years. It's simple economics, if the cost of making a product rises, so will it's price.
The development costs of making a game have risen from an average of 7-8 million dollars to upwards of 16-18 million dollars in the last few years. It's simple economics, if the cost of making a product rises, so will it's price.
Quote
Posted on 21:33, January 09th 2007
derf26 (old)

derf26 (old)

The development costs of making a game have risen from an average of 7-8 million dollars to upwards of 16-18 million dollars in the last few years. It's simple economics, if the cost of making a product rises, so will it's price.


Demand for games has also risen as mroe people have computers and it's 'cooler' to game.
[quote]The development costs of making a game have risen from an average of 7-8 million dollars to upwards of 16-18 million dollars in the last few years. It's simple economics, if the cost of making a product rises, so will it's price.[/quote] Demand for games has also risen as mroe people have computers and it's 'cooler' to game.
Quote
Posted on 22:42, January 09th 2007
Herrdidi

Herrdidi

The development costs of making a game have risen from an average of 7-8 million dollars to upwards of 16-18 million dollars in the last few years. It's simple economics, if the cost of making a product rises, so will it's price.


Demand for games has also risen as mroe people have computers and it's 'cooler' to game.


I still think it's funny. A $50 game (in the US) costs us about €60... Hey wait a minute here, isn't the exchange course of the USD vs EURO like, in favor of the EURO, as in, it's supposed to be less then 50 Euros to buy a $50 game.

How bizarre... So we (in Europe) pay about $74 (if im correct) for a $50 game.
[quote][quote]The development costs of making a game have risen from an average of 7-8 million dollars to upwards of 16-18 million dollars in the last few years. It's simple economics, if the cost of making a product rises, so will it's price.[/quote] Demand for games has also risen as mroe people have computers and it's 'cooler' to game.[/quote] I still think it's funny. A $50 game (in the US) costs us about €60... Hey wait a minute here, isn't the exchange course of the USD vs EURO like, in favor of the EURO, as in, it's supposed to be less then 50 Euros to buy a $50 game. How bizarre... So we (in Europe) pay about $74 (if im correct) for a $50 game.
Quote
Posted on 23:01, January 09th 2007
derf26 (old)

derf26 (old)

The development costs of making a game have risen from an average of 7-8 million dollars to upwards of 16-18 million dollars in the last few years. It's simple economics, if the cost of making a product rises, so will it's price.


Demand for games has also risen as mroe people have computers and it's 'cooler' to game.


I still think it's funny. A $50 game (in the US) costs us about €60... Hey wait a minute here, isn't the exchange course of the USD vs EURO like, in favor of the EURO, as in, it's supposed to be less then 50 Euros to buy a $50 game.

How bizarre... So we (in Europe) pay about $74 (if im correct) for a $50 game.


Yup and that has nothing to do with the exchange rate, but rather with all the fucking taxes. Tax on income (means companies set higher prices to compensate). Tax on imports (means importing each game costs more), high VAT, etc.

Damn Europe, you'd think with such high taxes they would have free medical services other than just in England or something? I don't think even the communists in the USSR charged that much...
[quote][quote][quote]The development costs of making a game have risen from an average of 7-8 million dollars to upwards of 16-18 million dollars in the last few years. It's simple economics, if the cost of making a product rises, so will it's price.[/quote] Demand for games has also risen as mroe people have computers and it's 'cooler' to game.[/quote] I still think it's funny. A $50 game (in the US) costs us about €60... Hey wait a minute here, isn't the exchange course of the USD vs EURO like, in favor of the EURO, as in, it's supposed to be less then 50 Euros to buy a $50 game. How bizarre... So we (in Europe) pay about $74 (if im correct) for a $50 game.[/quote] Yup and that has nothing to do with the exchange rate, but rather with all the fucking taxes. Tax on income (means companies set higher prices to compensate). Tax on imports (means importing each game costs more), high VAT, etc. Damn Europe, you'd think with such high taxes they would have free medical services other than just in England or something? I don't think even the communists in the USSR charged that much...
Quote
Posted on 07:30, January 10th 2007
Herrdidi

Herrdidi

rofl :D
rofl :D
Quote
Posted on 09:25, January 10th 2007
Parallax

Parallax

It depends on where you live in Europe. UK and Scandinavia is extremely expensive. I can't speak for UK, but in Scandinavia it is because of the extremely high living standards.

When it says $50 it is $50, unless it says excluding VAT. Same thing with everything you buy, tax rates has already been included in the price unless it says otherwise (of course the tax rates are different from country to country). This has been the case when I have bought and imported games from the US, Asia, UK, and other countries.
It depends on where you live in Europe. UK and Scandinavia is extremely expensive. I can't speak for UK, but in Scandinavia it is because of the extremely high living standards. When it says $50 it is $50, unless it says excluding VAT. Same thing with everything you buy, tax rates has already been included in the price unless it says otherwise (of course the tax rates are different from country to country). This has been the case when I have bought and imported games from the US, Asia, UK, and other countries.
Quote
Posted on 10:34, January 10th 2007
Silent_Bob

Silent_Bob

If you live in Europe get a US console and import with how weak the $ is against the £ your in a win win situation for the moment at least. US 360 games work out at around £30 or less that's including shipping.
If you live in Europe get a US console and import with how weak the $ is against the £ your in a win win situation for the moment at least. US 360 games work out at around £30 or less that's including shipping.
Quote
Posted on 10:38, January 10th 2007
 

put your comment here

CrazyCamel
Metriweb TripTracker